Express-News
Henry Cisneros on the hot seat
When Henry Cisneros joined the board of directors of Countrywide Financial Corp. in 2001, the real estate industry was poised for a spectacular ride... Cisneros' financial fortunes would soar, too. He was granted — and sold — more than $5 million in company stock as prices climbed from around $10 per share in 2001 to more than $40 per share in late 2006 and early 2007... Yet Countrywide's business began unraveling during the watch of Cisneros and his fellow directors. While the company's executives are considered primarily responsible, the case of Countrywide illustrates how quickly a director can find himself accused of having divided loyalties and poorly representing shareholders' interests...  He resigned from the board in October,... just days before Countrywide reported a $1.2 billion quarterly loss. Read more... http://www.hobb.org/index.php?option=com_content&task=view&id=2453&Itemid=197
Please visit the Express-News to "Talk Back" http://www.mysanantonio.com/news/metro/stories/MYSA021708.01A.Cisneros-Countrywide.3584118.html
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My posted comments:
What a great article and comments!
It is not the economy that is to blame for the current housing crisis it is simple greed that caused the current economic mess.

Henry Cisneros can hardly claim innocence in the predatory lending scandal. Predatory Lending was devised in the 90’s and implemented by the homebuilding industry (NAHB) and Cisneros as Secretary of HUD.

In ’93 and ‘94 Cisneros made significant policy changes at HUD to deregulate lenders which became the foundation for the homebuilding industry’s massive predatory lending. The plan gave the Homebuilder owned lenders like KB Mortgage and affiliate lenders like Countrywide independence to approve their own ‘pulse’ loans. If person had a pulse they had a loan and a house was thrown up in a few days.

It was Cisneros that approved the infamous KB Home Mirasol, HOPE VI project that was to become one of the biggest HUD homeownership scandals ever perpetrated on those who could least afford it.

After leaving HUD Cisneros not only became a Countrywide board member but a KB Home board member as well. He created American City Vista, an affordable housing joint venture with KB Home and KB began constructing defective Mirasol houses that cost taxpayers millions, of which $4M is still missing.

Whenever there is a federal program for those in need you can be sure that big business will find ways to make a fortune on the disadvantaged and middle class taxpayers.

Janet Ahmad